Tomato farming venture using greenhouse technologyBusiness plan Contents 1. Executive summary 2. General company description 3. Operational plan Production Location Personnel Suppliers Credit policies Management and organization 4. Marketing plan Industry analysis Target market/customers Competition Strategy Anticipated challenges 9-month sales forecast 5. Financial plan Start-up requirements 9-month profit and loss projection Opening day balance sheet Cash flow statement 6. Loan required and proposed repayment terms Amount of loan needed How the funds will be used What this will accomplish Requested repayment terms Collateral offered 7. Appendices Market research studies Greenhouse supplier quotation Web articles 1. Executive summary The tomato farming project will be the first project carried out by Donma limited and will involve the establishment of one greenhouse tunnel on a freehold piece of land at Maseno near Kisumu. Greenhouse farming is a modern way of growing crops that involve the growing of crops in an artificially controlled environment that ensures reduced susceptibility to diseases and increased yield of crop. Plants are fed nutrients through a drip irrigation system and they are grown in the most suitable conditions, which allow each plant to produce the maximum fruit possible. The greenhouse method of farming will have the following advantages: High tomato yield Reduced disease attack Reduced labour costs since operating the system is not labour intensive. Consistent production of the crop irregardless of the prevailing season Uniformity of crops in terms of size and quality The demand for tomatoes has been and still remains high in the country due to the fact that most Kenyan families use tomatoes as a basic ingredient in most of their meals. Tomato growing using greenhouse technology is steadily picking up in the country and we wish to profitably position ourselves in this industry by producing quality products and aggressively marketing it to our customers. The customers for our products will include the following market segments in Kisumu and its environs: Hotels, eating joints and lodgings Open air Markets Supermarkets Schools and colleges Groceries and independent retailers Customers buying from the farm Processing industries Donma Enterprises Limited is a private company limited by shares incorporated in December of 2010. The company is seeking to raise funds for the purpose of financing the acquisition of the greenhouse facility and to commence operations. The project will utilize one greenhouse tunnel sourced from Amiran Kenya, a company that has been supplying greenhouses to Kenyan farmers for decades. The greenhouse comes in a comprehensive kit that includes all the equipment necessary for the first season of crop. The largest portion of the start-up requirements is for the purchase of this greenhouse kit, its installation and agronomical support from the suppliers. The total project will cost a sum of Kshs 250,000. We are injecting Kshs 50,000 into the business. We require an extra Ksh 200,000 as loan to successfully buy the kit, establish it on the farm and commence and continue operations until the project is self sustaining. 2 O. We feel that a greenhouse tomato project offers the best way to start off since the possible returns are considerably high compared to the reasonable start-up costs. 2. The Managing director will be the project manager for this project. This will ensure that there are no gaps in our supply and no subsequent loss of customers.Box292 Maseno Physical Address: Kisumu Milimani NHC housing estate opposite central primary school. We therefore wish to start of a profitable project that will stir uptake of shares in the company. In order to ensure continuity of supply. Corporate information Postal Address: P. we intend to acquire another greenhouse before the first crop dies out.We intend to begin operations in the month of June 2011 and begin making sales by mid august or early September. General company description Donma enterprises limited is a private company limited by shares and incorporated under the companies Act Cap 486 laws of Kenya. 3 . Block 38 Telephone 0726 775 839 E-mail:
[email protected] Directors Michael Omollo Chairman Albert Agutu Managing Director Silas Odhiambo secretary Janet Akeyo Martha Awidhi Perez Joan Fanuel mbola The Company was formed with the intention of ameliorating the financial standards of the family but uptake of membership has been unimpressive. Amiran Kenya offers training on aspects of technical operation. knapsack sprayers. Operational plan Production The tomatoes will be grown in a state-of-the-art greenhouse tunnel. thus higher profitability. and safety equipment. taste. The quality of the crop is ensured because the regimen used is set to produce specific results. the supplier. The said piece of land has access to reliable supply of piped water necessary for irrigation and is easily accessible to the main road (Kisumu-Busia highway) thus ensuring that produce will easily be delivered to the market. an irrigation system. 3.000 Kgs (6 tonnes) of tomato in one season. Faster. Personnel There will be a project manager who will be responsible for overall management and one employee responsible for the day to day operations of the green house. record keeping and a user manual is provided in order to get the most out of the kit. The greenhouse kit comes complete with hybrid seeds. In order to be conversant with how to operate the system. The advantages of growing crops in greenhouse tunnels are: Higher yield. agro-chemicals. Personnel plan (Amounts in Kshs) 4 . The work involved is not labour intensive and therefore only one employee is required. disease control. ancestral piece of land. longer growth (harvesting begins in 21/2 to 3 months and continues for 6months!) Labour reduced by almost 80% Crop is grown irregardless of prevailing season The greenhouse will have the capacity sufficient to produce approximately 6. Location The farm will be located in Kisumu karateng near Maseno on a freehold. The amount of water and nutrients supplied to the plant is specified and experience shows that the quality (size. fertilizers. The tomatoes are grown following a specified regimen recommended by the suppliers of the equipment. health) of the crop is constant and guaranteed. Before taking on any new credit customer.com Website: www. Telephone: 0719 095000 Fax: 020-82485/7 Email:
[email protected] 2.00 7.00 5.00 7.00 7.00 5. A comprehensive schedule and written procedures will be prepared in order to guide the employee on the procedures. The employee will receive the required training necessary to competently carry out the operations. all the required supplies (fertilizers.00 2.00 2. we will first establish their credit-worthiness. The credit period will be the subject of agreement between us and individual customers and will not be a blanket predetermined period.00 0 0 0 0 0 0 0 0 0 Total people 2 2 2 2 2 2 2 2 2 Total payroll 7. They will also provide the services of a regional extension officer to provide us with relevant advice pertaining to any challenges we face.00 7.00 7. Our research has revealed that they are competent and reliable and that working with them will be beneficial to us.00 5.00 2. Sales to supermarkets. This will be done by 5 . Physical address: Old Airport North Road.00 2.00 2. Postal address: P.00 0 0 0 0 0 0 0 0 0 The project manager will oversee the project.00 7. ensure repayment of the loan and ensure the produce is effectively marketed.O. Amiran Kenya has had a long presence in the country and has supplied several farmers with greenhouses for decades.com Amiran will supply the greenhouse.00 5.00 0 0 0 0 0 0 0 0 0 Employee 2. This is important in case of any chance of forgetfulness.00 5. Nairobi. Credit policies Some of our sales will have to be credit sales.00 7.manager 5.00 2. seeds. set up the structure at the site and offer training on how to operate the greenhouse. schools and some hotels will have to be credit sales due to the purchasing policies of such customers.00 5.00 2. However. Suppliers Key supplier: Amiran Kenya.00 5. pesticides).00 7. maintain proper records and accounts. Jun July Aug Sep Oct Nov Dec Jan Feb P.amirankenya.00 5. we will set our maximum repayment period at one month in order to ensure proper cash flow. Box 30327-00100. The project manager. we will then agree on the payment terms. Thus. The third attempt was successful but the major problem was the kind of tomato grown-the money maker variety which is not popular in the market because of its highly perishable nature. The overall management will be carried out by the project manager. The details of the market research study are included in the appendices section. The second attempt produced better results but due to lack of water. Management and organization The daily operations will be carried out by the employee who will be trained prior to the commencement of the operation. Industry analysis 6 .consulting with their suppliers for other products to establish their repayment history. The anticipated employee was instrumental in all the previous attempts and is thus a suitable farm hand. This experience will come in handy in ensuring the success of the enterprise. Our marketing plan is based on 1) a market research study carried out between 20th December 2010 and 5th January 2011 and 2). We will also factor in the cost of extending credit into our prices. Having quality products is meaningless if the product is not bought by customers. though profitable. We will therefore put immense emphasis on marketing and selling our product. Albert Agutu. The project Manager is not in any employment and will therefore have no time constraints and can therefore dedicate sufficient time and attention to the project to ensure its success. the project manager’s experience gained after growing tomatoes on four occasions. has accounting background (CPS section 2) and sufficient experience in growing and marketing tomatoes. Marketing plan Marketing will be one of the major pillars of this venture. has a degree in law. He has grown tomatoes four times: The first attempt ended in a dismal failure. 4. maximum returns were not realized The last attempt failed due to the 2008 post election violence. only a small profit was realized. If we establish a healthy payment history. The demand for tomatoes by high-end hotels. Mombassa. These include Maseno university. eating joints Our research and experience shows that this is one of the best market segments. Customers buying directly from the farm Our experience has shown that the number of customers attracted by selling direct from the farm is quite considerable. The demand for tomatoes has been constant because it is indispensable in a majority of Kenyan meals-most families use tomatoes in at least two meals every day.Meru central. Eldoret and western Kenya. and Yatin. They often require quality products and a reliable supply-we will certainly be able to satisfy these requirements. Taita Taveta District. Kisumu boys. Independent retailers and groceries We will also target retailers by emphasizing competitive pricing and consistent supply of tomatoes. Nyeri District. The produce marketed in the bigger cities that is Nairobi. Daraja mbili market.Most of the regions in Kenya produce tomatoes which are marketed in the local markets. Processing industries This market segment will be approached when we increase our output due to the demand for high quantity by these industries. This ensures that the demand for tomatoes will continue to be constant in the future. middle class restaurants and backstreet eating joints is phenomenal and is bound to ensure that our produce sells well. Nakuru district. Huma girls. Ukwala. Lwanda market. Chulaimbo secondary. Hotels. Nakuru. Customers The market for tomatoes is segmented into the following main categories of customers: Schools and universities There are many schools and universities in the region that will provide a good market for our products. Maseno school. This method of selling involves lower prices since there are no extra costs and these lower prices attract quite a number of customers. 7 . Eldoret and other major towns are sourced from Kirinyaga district . Maseno market. The Nyanza region does not produce as much tomatoes and therefore the demand for the product in Kisumu and its environs is mostly satisfied by farmers in Eldoret and western Kenya. lela market. Open air Markets Selling at markets is best done through agents. There are a number of markets where we will be able to sell our products: Kibuye market. Kisumu Girls and much more. Supermarkets Almost all supermarket sell fresh produce. Kisumu. Supermarkets in the region include the different branches of Nakumatt. lodgings. the quality of our tomatoes is first-class irregardless of the season. Competitive pricing Marketing and sales strategy Our strategy is to profitably and efficiently utilize greenhouse technology in the production of tomatoes and aggressively market our produce to our customers. The company's goals in the first year are to: Purchase and establish the greenhouse on the farm To repay the entire loan plus interest.since the same regimen is followed. the environment is artificially controlled and the prevailing seasons do not affect the availability of tomatoes. We will send out sales letters along with flyers introducing ourselves and what we have to offer 8 . Competitive advantage Our main competitive advantages are: Consistent supply . This increases their cost due to increased transportation costs. However.000 for the season. Consistent quality. with greenhouse technology. We also plan to use the first greenhouse as a step to phenomenal growth in the near future thereby capturing a substantial percentage of the market not only for tomatoes but for other farm produce as well. and then later on nationwide and even export options. focusing at first on local markets. We will market and supply our products to potential customers aggressively. To achieve profits of KShs 200. To establish a second greenhouse The company's long term plan is to also produce a wider variety of vegetables as well as well as other farm produce.Competition There are a few tomato farmers in the region and most tomatoes come from other areas such as Eldoret and western Kenya.most farmers rely on traditional rain-dependant agriculture which makes the availability of tomatoes seasonal. Since we will be selling our products locally. the transport costs will be kept relatively low thus making our tomatoes more affordable. We will emphasize the reliable year-round output of our climate-controlled greenhouses. We will also make door-to-door visits and market our products to potential customers. 22. Produce will be transported in wooden crates on hired pick-up as per orders. We will try to counter his by building concrete relationships with our clients. This will be done immediately after the plants are planted (i. although these future marketing avenues are not included in this plan. 3.5t 1. This is because of he experience we have and the ease of growing crops in a greenhouse. two months before harvesting) The company will also eventually develop a website and advertise on the Internet. Sales forecast We expect to have exceptional sales in the first year due to our anticipated aggressive marketing and our high quality produce.8 3. 353. 87.e.8 3. 9 .8 3. 60. 87. 60. Jun Jul Aug Sept Oct Nov Dec Jan Feb Total Unit sales Total unit nil nil nil 600 1 1. Our tomatoes will be mainly sold through wholesale marketing. July and August as the crop will not have matured. Later on we plan on repairing and using an old family pick-up at our disposal Anticipated challenges We expect the production stage to be generally hassle-free. It will also be difficult to determine these bountiful seasons because of current erratic weather patterns. . Production of tomatoes varies from month to month depending on the stage of growth.8 - 00 00 00 00 00 00 Sales (Kshs) Total nil nil nil 34. Harvesting begins 3 after planting and we therefore expect our first sales from mid August to early September.000Kgs sales kg ton ons ons n kgs 93crates 9cr 16c 23c 23c 16c 6cr ates rts rts rts rts ates Unit prices (Kshs) . The main challenge we anticipate is in the marketing stage. emphasizing our competitive advantages and concentrating on aggressive marketing.8 3.8 3. This is especially so during seasons when tomatoes flood the market. .5t 1to 400 6.400 sales 200 800 400 400 800 800 Notes We will not make any sales in the month s of June. 5.500 prepare land Transportation of greenhouse to Maseno 10. 10 .500 Installation .900 Operating expenses Item Est.500 Casual labour to put up greenhouse and 1.000 management costs Transport cost of 5. Tomatoes are sold either in crates or in Kilograms.000 3 6. The sales forecast covers a period of 9 months since this is the seasonal duration of one crop.000 initial harvests Contingency 10.cost per month No of months Total estimated cost P. 1 crate of tomatoes weighs 64 Kgs.000 1 5.000 Employee wages 2.100 TOTAL ESTIMATED START-UP CAPITAL 250. 10.000 Promotion & 4.000 Agronomic support .400 Ballast 1.100 TOTAL FUNDING FOR ASSETS 201. 12.000 SUB_TOTAL 201.000 3 12. Start-up expenses This statement estimates the amount of money we will need to launch and maintain the project until sales receipts can cover operating expenses and debt service Donma Enterprises Start-up cost estimate Start-up assets Item Units Estimate Greenhouse tunnel 1 155.900 TOTAL OPERATING EXPENSES 48.000 cement 1. We will use both of these units in order to maximize profits.000 Cash required 10.000 3 15. manager salary 5.000 Notes *Management expenses include transport and telephone expenses and other expenses to enable adequate project supervision. Financial Plan . 900 Cash introduced 50.Income Statement The following is a projected income statement for the first season of business (i.000 Gross profit 331.000 Profit before loan repayment 203.400 Less operating expenses: Wages and salary 63.000 Loan 200.000 Total Operating expenses 128. agro-chemicals and fertilizers.400 Less Cost of inputs 22.000 Transport expenses 30.100 11 . which amounts to 22.000 Depreciation 5. The cost of inputs includes the cost of seeds. Opening Day balance sheet The following is the pro forma balance sheet at the commencement of the business.000 Current assets Long term liability Cash 10.000 shillings.000 Bank 38.400 Notes The amount for sales is derived from the sales forecast. Donma Enterprises limited Balance sheet as at June 1st 2011 Fixed assets Capital Greenhouse kit 201.000 Management & promotion expenses 30.e.9 months) Donma Enterprises limited Pro Forma profit and loss statement for the first season of business Sales 353. 2 60.4 87. 10. Loan required and proposed repayment terms Amount of loan needed We require financing to the tune of Kshs 200. .20 5.00 3.0 60.00 5.0 000 000 00 00 00 00 00 00 00 Net cash flow 6.0 7.8 22.2 60.00 5.00 7.00 00 00 0 0 0 0 0 0 0 Transport . 16.0 6.4 60.00 7.0 40.4 60.8 87.000 Total liabilities and 250.0 15.8 87.0 75.00 3.00 3.0 34.0 40.4 12.00 3.00 7.0 3.00 5.4 5.00 0 0 0 0 0 0 Management & 3. 5.00 promotion expenses 00 00 0 0 0 0 0 0 0 Loan repayment nil nil nil 15.0 3.00 5. 16.0 30.0 75.8 22.00 3.00 7.100 Nil nil Sales nil nil nil 34.00 7.00 3.0 60. 10.80 7.0 6.80 12. .8 00 00 00 00 00 00 total cash received 16. How the funds will be used Here is a breakdown of how the loan will be used: 12 .00 5. Total assets 250.0 7.03 4.0 55.0 - 00 00 00 00 00 Total cash spent 10.000 to be able to purchase the necessary assets and to commence operations.000 Capital Projected cash flow The following table is the projected cash flow for the first 12 months: Pro Forma cash flow Jun Jul Aug Sep Oct Nov Dec Jan Feb Cash received Cash introduced 48.4 87.00 7.0 55.8 033 033 33 00 00 00 00 00 00 Expenditure Wages 7.80 33 33 3 0 0 00 00 0 0 6. 000 Cash to carry out operations 8.000 repayment 0 0 0 0 Total 15.00 60.0 215.00 40.e. the size of our market and whether our products would be marketable.0 0 0 00 00 00 00 Collateral offered There is no direct collateral offered.0 220. The region was the base of our research since it is where we intend to market our products. the greenhouse) and will be able to reposes it in case of failure or inability on our part to repay the loan.000 Installation costs 14.500 Transporting greenhouse to the farm 10. Purchase of a greenhouse kit from Amiran 155. Commencement of operations will eventually enable us to begin harvesting the crop and make sales. Jun Jul Aug Sep Oct Nov Dec Jan Feb Loan nil nil nil 15. the financier.00 115. we carried out a market research in Kisumu and its environs between 20th December 2010 and January 5th 2011. Appendices A) Market research studies In order to effectively determine who our customers would be. 13 . However. The following repayment schedule will enable us repay the loan in the proposed period. We anticipate that the sales will enable us repay the loan and to thereafter establish a successful business operation.0 175. 7. Requested repayment terms We propose to repay the loan over a period of one year at an interest of 10% of the borrowed amount beginning three months from commencement of business.400 To pay for Agronomic Support 12.00 55.000 5. as a form of security. or co- financiers will have a lien over the fixed asset (i.100 What this will accomplish The loan will be instrumental in enabling us to purchase and establish the greenhouse at the farm and to commence operations.00 60.00 40. 5 in kibuye market. Lwanda market and lela market. Use of agents is popular in this kind of marketing.Our study was designed to elicit the following information: Who will we sell our produce to? Is there sufficient demand for tomatoes in the region? Who is our competition and how can we beat them? Will our produce be marketable? Will our business be profitable? It took the form of interviews with various people and secondary research on the internet. However. daraja mbili market. to confirm that the market was still intact. o We also sought to establish how we could get our produce to be sold at the open air markets in the region. lodgings and eating joints Processing industries Is there sufficient demand for tomatoes? Most of the hotels we interviewed use tomatoes in most of their meals. Who we will sell our produce to The project manager’s prior experience was useful in determining who our target market would be. The stretch of eating joints in this area of town is quite popular with the locals and a good number of their meals are cooked using tomatoes. 5 in Kenya Re estate and another five randomly picked in various locations in Kisumu. We therefore toured Kibuye market in Kisumu town. o Interviewed 10 popular eating joints located near the Akamba bus stop. o Interviews with 22 households in different estates in Kisumu to establish the frequency of use of tomatoes by the average Kisumu family. Their supply is however uncertain because of the fluctuating supply of tomatoes. We conducted the following interviews o Interviews with 20 retailers and groceries: 5 in Milimani estate. This information is as presented below. we conducted interviews with possible customers in different market segments. We managed to elicit a substantial part of the information we were looking for. 80% of the households 14 . We came up with the following possible groups of customers for our produce: Schools and colleges Retailers and groceries Supermarkets Open air markets Customers buying directly from the farm Hotels. interviewed use tomatoes in at least two meals per day. February 2. We thereafter concluded that the products we will be selling will be marketable. sufficient to sustain our business. The combined effect of these two factors is that the few who seriously venture into this area of business get rewarded handsomely. This fact is what will give us one of our competitive edges.tuwei@amirankenya. In order not to repeat this mistake. Will our business be profitable? Our secondary research reveals that tomato growing is one of the more profitable horticultural businesses in the country. We later learned that it was preferred by processing industries and not other segments of the market. The agents at the open air market revealed that at most times. Who is our competition and how can we beat them? It was a challenge trying to conclusively determine exactly who the competition is. we can guarantee a constant supply at a constant predictable price. It was too juicy and therefore more perishable than other varieties. sample of tomatoes from one of Amiran’s demo farms was presented to retailers to determine if they found it to their taste. Will our produce be marketable? On one of the earlier attempts at growing tomatoes.com> 15 . Growing tomatoes the traditional way is quite labour intensive and a bit risky. We therefore established that there is good demand for the produce. we established that the main competition include farmers who rely on rain-fed agriculture. Greenhouse technology is still more than local farmers can afford. The profit margins are healthy and the demand is high. we grew a variety of tomato (money maker) that was extremely difficult to market. they have problems meeting the demand for the fruit. We are also convinced of the profitability when we estimate the amount of yield we expect to get in one season and the going prices of tomatoes in the market. 2011 9:19 PM From: "Silas Tuwei" <silas. However. due to the seasonal fluctuations in the availability of the fruit. Because we won’t have to rely on the seasonal conditions. High disease prevalence and high cost of inputs make many farmers avoid it altogether. B) Quotation from Amiran Kenya as at February 2nd 2011 Email received from Amiran Kenya Thank you for Visiting Amiran Kenya Wednesday. 8.00 Renewable Annual Agronomic Support 12.00 Please let us know your progress in acquiring the Amiran Farmers Kit (AFK) for your project as we are keen to help in any way possible to make your project a success.000. Seeds (Green house crop and open field).600. Feel free to contact us for any further information or clarification that you may require. 4. Thank you for visiting Amiran House and for expressing interest in becoming an Amiran Farmer.com> Cc: "afk" <afk@amirankenya. Training.00 TOTAL 161. Amiran Farmers Kit 139.Chemicals (to cover for one season of crop). We hope that after the visit at Amiran House you have a better understanding of the technological innovations that Amiran is offering. 6.600. The cost of the Amiran Farmers Kit (with 8m x 15m Greenhouse) is as per the table below. Catridged mask and Gloves). 5. Farmers sprayer.Add sender to Contacts To: "
[email protected]> Dear Albert. Kisii and Malindi. Regards. Personal Protective Equipment (Overall. ITEM Ksh. 3.000. Mombasa. The Farmers Greenhouse. 7. Drip irrigation system (to cover 1/8 of an acre). We invite you to visit any of Amiran’s Official Demonstration Units in.00 Installation 10. 9. where we are growing a variety of Crops. 10. 1. Renewable Annual Agronomy Support. 16 .com" <albertzachary@yahoo. Agro. Collapsible tank. Nakuru. The Amiran Farmers Kit is an all inclusive farming unit that includes the following integrated technologies. Fertilizers (to cover for one season of crop). 2. Quotation as at 3rd May 2010.amirankenya.Silas Tuwei Integrated Projects Officer| Amiran Kenya Ltd Tel: 254 (0) 719 095 226 I | Mobile: 254 (0) 735 769 577/ (0) 725 895 445| Fax: 254 20 824856-7 / 824837 Email: silas.com The price of the greenhouse went up due to inflationary pressures and the current quotation stands as
[email protected] |Website: www. 17 . 18 . 19 . which currently get damaged during the wet seasons. at one year. Kenya could start enjoying year-round supply of tomatoes. The fourth demonstration site. 2007 Kenya to test greenhouse tomato production model for small scale farmers Kenya has started greenhouse production of tomatoes. and at the Lake Basin Development Authority compound in Kisumu. According to the KHDP. at the Agricultural Training Centre in Kericho. If the concept is widely embraced. African Agriculture October 08.000 plants.000 ($2. One plant has a potential of up to 15 kg at first harvest. 20 . The plot of land can grow 1. Mombasa. is borrowed from Israel. comprising a 500 litre water tank. According to Peter Randa. The cheapest kit.C) Web articles These two articles from reputable dailies illustrate the profitable nature of the greenhouse business and the way it is picking up in the country. It is also widely practised in the United States. raising hopes that the popular vegetable will become available throughout the year at affordable prices. In the new system developed by the Kenya Horticulture Development Programme (KHDP) and agricultural inputs suppliers Seminis Seeds and Osho Chemical Industries. a grower requires about 240 square metres of land and a greenhouse kit to get started. for the Coast province. seeds and chemicals has been put at Ksh150. pushing prices through the roof. plastic sheet. It takes a shorter period — two months — for greenhouse-produced tomatoes to mature. going up to 60 kg by the time it has completed its full cycle. the marketing manager and project technical advisor. the crop sports a continuous output of flowers and fruits.239) for those participating in the project. one of the activities the programme is supporting to help increase the incomes of rural households. The tomatoes have a shelf-life of 21 days compared with 14 for those grown in the open. Others are in Nairobi at the Horticultural Crops Development Authority compound. was launched last week at the Agricultural Training Centre in Mtwapa. while it takes a minimum of three months with outdoor farming. growing crops under greenhouses has many advantages. Due to controlled irrigation and temperatures. all at different stages. irrigation drip lines. where the country has most of its agriculture under greenhouses due to scarcity of water and land. among them the ability to produce huge quantities on a small piece of land and continuous harvesting. most of the common infections are easily kept at bay. Embakasi.. Charles Oola introducing Mr Charles Oola who The Standard team found tending her crops. Apart from huge savings on crop protection chemicals. as well as weeds. she is a proud owner of a small greenhouse where she is producing tomatoes. Although Wanjiku is a trained journalist who had no basic knowledge in modern farming. It is also good for the environment. although they can grow outdoors as well. The project is located on a quarter of an acre piece of land where her home also stands.htm Online edition Turn your garden into a profitable greenhouse Published on 07/04/2010 By Maore Ithula When Ms Florence Wanjiku Wang’ombe went on early retirement last year. Tomatoes are generally highly susceptible to diseases. tends tomatoes in a greenhouse farm./AppData/Local/Local Settings/Temp/tomaato. But under the greenhouse hygienic growing techniques. while exposure to chemical toxins associated with application is minimised or eliminated altogether." she says. [PHOTO: Jenipher Wachie] 21 . which constitute a huge part of production costs. the minimum plot of land under greenhouse production can yield up to 25. Research revealed that tomato production has few risks especially if it is cultivated in a greenhouse. requiring heavy application of pesticides. The East African The Standard I. Planting materials for the greenhouse tomato production have been specially developed as high yielding. If well looked after. Now she is one of the dozens of tomato producers in Utawala Estate. she did not think she would end up in urban farming. What prompted Wanjiku to take up horticulture.The supported vines can grow up to 50 metres in height. how does she do it and why does she produce tomatoes and not any other crop? "I got the idea from a neighbour who has been in this business for a year. less labour is employed in a greenhouse. Invest wisely A single mother of two and jobless. says Wanjiku.000 tonnes of tomatoes. Wanjiku had to invest her savings wisely lest she fails to see her children through school. as are insects and other pests. Consultant Greenhouse tomato production in Utawala Estate is a one-man show. "This is the man behind this project and many others in this area. He became a consultant in small-scale horticulture in Nairobi . Wanjiku’s greenhouse stands on a six by 12m potion of the land accommodating about 300 plants. Oola says the project will produce about 10 tones of the vegetable over one year. manure. 000 from her investment in the next one-year. Two years ago." he says. The cost of putting up the project. seeds. Please don't believe the information that you see out there in impressive brochures by greenhouse sellers. 000 per week per farmer for weekly visits. A kg of tomatoes goes for about Sh40. That is on a very good day (and they are not many). which is what I have done. It is the in-thing for women. prepares seedbeds. But over time people are getting to understanding me. To build a small greenhouse Oola charges Sh20. labour cost and Oola’s expert fee. Oola retired from formal employment where he worked as an agricultural extension officer for 20 years. 22 ." he says. transplants seedlings.. Oola says tomato farmers in the area will make a fortune this season because the prevailing heavy rains are likely to ruin crops grown in open fields. all my clients are practicing soil less farming. is Sh100. "To minimise application of agrochemicals. He says Wanjiku is likely to make about Sh400. Business plan prepared by Albert Agutu CEO Donma Enterprises. High returns "At the beginning of my consultancy." she says. ati 40Kes/Kg farm gate. says Oola. This is some experience about greenhouse tomato farming. It takes three months from the seedbed to the first harvest. 000 including the cost of the greenhouse materials.. "The returns are high. He helps us build greenhouses. Waniku says. 000 and Sh1." Today Oola has helped establish more than 20 small greenhouses in the estate where tomatoes are being produced. it was difficult to sell my ideas because I do not own a piece of land in the city where I could demonstrate what I am capable of doing. applies fertiliser and shows us how to weed and guides us on general plant husbandry including crop protection. e.then you have some economies of scale. and the roads there are near impassable if it rains. Personnel: Get a trustworthy guy. I know someone who opted to feed his cows rather than sell at 10/kg. but its doable). Obviously.. until you get the right person.. but with more hussle..Something always goes wrong at one point. . but sell to end users or retailers. they will also frustrate you at times. . it rained a little. . Taking to the soko is hasara if you don't have big quantities. Do a soil and water test. e. or have someone who can run the farm and stays in it. go for the bigger sizes. and whether its all worth it. I planted during rainy season. Try and avoid going to the market. in which case you need a vehicle for ferrying produce. watering schedule. That is hogwash. .c you can get upto 50% more by right market targetting. yet retail price is about 60/Kg. low opex business if you can get 80% of it right. 8x30m . There was a week a crate was going for 2800.Keep abreast with market prices. Always conduct interview first before giving someone the job.Have your guy trained by some professionals in the field.Production .g.t.Harvesting period can be as long as 8 months to as low as 3 months. We had to transport a lorry of manure by wheelbarrows a distance of about 200m. especially when they know you are dependent on them. or have some agent come and get the crops at some ridiculous price. Forget about those spreadsheets that say you return your money in 6 months. This is a high capex. who will not sell your produce when you are busy working. top dressing e.Marketing . restaurants. Try and look for a solution. Make sure you have a constant supply of water (one way or the other). Even a tractor got stuck in the same mud. Depends on how well you take care of your plants. Fire and hire as many times as may be necessary. it will save you alot in future. Depending on area.Key areas: . They can make or break you.either do your own marketing. those mama mbogas. I still wonder how people farm on those 8x15m Greenhouses for commercial purposes. personnel and marketing right. If you want it to make sense. This guy is a deal breaker. For example.Even if you have people coming to the farm. because the lorry got stuck in mud. Make sure they do what they are supposed to . Those mamas for the soko will frustrate you thoroughly. Its quite challenging doing it remotely (I go to farm twice a week.if its spraying. you get more money. if you are marketing yourself. the same crate went for 3600 after 3 days.c. applying fertilizers. then you are onto something. Please try and keep insects away at whatever cost.5-3 years for it to start generating money for you. Its in such times that you question what you are doing. it helps if you are staying within the farm. you will face other challenges. 23 . .t. If you get production. Give it 1. 24 .I can answer questions if there are any.